Riverstone Holdings LimitedCorporate Presentation 2020

Disclaimer

This presentation may contain forward looking statements that involve risks and uncertainties. Actual future

performance, outcomes and results may differ materially from those expressed in forward looking

statements as a result of a number of risks, uncertainties and assumptions. Representative examples of

these factors include (without limitation) general industry and economic conditions, interest rate trends,

cost of capital and capital availability, competition from other companies, shifts in customer demands,

customers and partners, changes in operating expenses, including employee wages, benefits and training,

governmental and public policy changes and the continued availability of financing in the amounts and the

terms necessary to support future business. You are cautioned not to place undue reliance on these

presentation and the information contain therein, which are based on current view of management on

future events.

Without prejudice to or derogating from the generality of the foregoing, no representation or assurance is

given by Riverstone that this presentation contain all information that an investor may require. To the extent

permitted by applicable law, Riverstone or its related persons (and their respective directors, associates,

connected persons and/or employees) shall not be liable in any manner whatsoever for any consequences

(including but not limited to any direct, indirect or consequential losses, loss of profits and damages) arising

from the reliance or use of the information contain in this presentation.

Investors are advised to make their own independent evaluation from this presentation, consider their own

individual investment objectives, financial situation and particular needs and consult their own professional

and financial advisers as the legal, business, financial, tax and other aspects as investors may regard as

relevant.

2

Overview Product

Segments

Financial

Highlights Investment

Merits

3

Key Milestones

1989

1991

1994

2006

2009

Established to

provide glove

chlorination,

laundry and

packaging services

to glove

manufacturers in

Malaysia

Incorporated

Riverstone

Resources Sdn

Bhd to

manufacture

cleanroom

gloves

Pioneered the

manufacture of

nitrile

cleanroom

gloves in

Malaysia

Successfully

listed on the

Mainboard of

Singapore

Exchange

(SGX:AP4)

Diversified into

production of

premium

healthcare

gloves

4

2020*/ 2021/ 2022

Key Milestones

2013Launched five-

year expansion

plan to bring

total production

capacity to 8.6

billion (later

revised in 2017

to 9.0 billion) by

end FY2018

5

Launched new three-year expansion

plan at a new production site in Taiping,

projected to raise capacity by up to 1.4

billion pieces of gloves per annum to

bring total annual capacity to 14.0-15.0

billion pieces by FY2023

2018/ 2019Launched phase 6

expansion plan to

add another 1.4

billion pieces 10.4

billion pieces in

total annual

production capacity

* Delayed by 2 quarters due to Covid-19 lockdown measures

Group Structure

Riverstone Holdings Limited

(Investment Holding)

Riverstone Resources Sdn Bhd

(Cleanroom & Healthcare Gloves)

Riverstone Resources (Wuxi) Co. Ltd.

(Cleanroom Gloves)

Protective Technology Co. Ltd.

(Cleanroom Gloves)

Riverstone Industrial Products Sdn Bhd

(Cleanroom Consumables)

Riverstone Resources (Singapore) Pte. Ltd.

(Distribution Cleanroom Gloves)

Eco Medi Glove SdnBhd

(Cleanroom & Healthcare Gloves)

Eco Medi Glove Products (Shenzhen)

Co. Ltd. (Cleanroom & Healthcare Gloves)

100% 99.993% 100% 100% 100%

100%

Representative Sales Offices

• Riverstone Resources (U.S.A.)

• Riverstone Resources (The Philippines)

6

100%

Healthcare Business

Examination GlovesFood Grade

Gloves

Cleanroom Business

Cleanroom Gloves Other Cleanroom Consumables

• Packaging Bags

• Face Masks• Fingercots• Wipers

7

Business Segments

Glove Market Segments

CLEANROOMGLOVES

95%in the

ELECTRONICS INDUSTRY

5%in the

PHARMACEUTICALS INDUSTRY

HEALTHCARE /

FOOD GRADEGLOVES

90%in the

HEALTHCARE

INDUSTRY

10%in the

FOOD

INDUSTRY

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Nitrile gloves

Latex gloves

Finger cots

Packaging

materials

Face masks

Other consumables, e.g. face pouches,

hoods, caps, jumpsuits, shoe covers,

critical task wipes, and swabs

Product Suite

• High-tech electronics

manufacturing, incl. HDD, semi-

conductors, LCD, tablets and mobile

devices, external storage devices,

and consumer electronic devices

• Medical devices manufacturing

• Automobile

• Pharmaceutical

• Aerospace

• Laboratory and research

• Solar devices manufacturing

• Lenses

• Battery

CLEANROOM

• Under Riverstone’s own brand

• Direct to end-user

• Highly customised solutions

• High barriers of entry

• Not over-reliant on single major

customer; well spread out

customer base

• Sustainable profit margin

Business Nature

Customers

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Product Segments

Procedure

gloves

High-risk

gloves

Hand-specific

gloves

Dental gloves

Accelerator-

free gloves

Product Suite

Distribution to countries such as

USA, Europe & Japan

HEALTHCARE

(PPE)

&

FOOD GRADE

• Partnership with distributors

• A mandatory product in the healthcare

industry (thus resilient to economic

conditions)

• Established market niche in premium

healthcare gloves

• Customised solutions based on usage

or end-user

• Diversified customer base without

dependency on a single major

customer

• Resilient to economic changes

Customers

Business Model

10

Product Segments

11

Cleanroom Gloves

Healthcare & Food Grade

Gloves

Other Cleanroom

Consumables

Volume of Gloves

15% 85% NA

Revenue 26% 69% 5%

Gross Profit Contribution

51% 43% 6%

Financial KPI

Consisting of:1) Finger cots2) Packaging bags3) Face Mask4) Wipes

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1,000.0

2016 2017 2018 2019 2020

148.1205.7 209.8 240.5

279.4

156.7

213.2 214.2239.7

167.0

187.8239.5

251.3183.0

210.3

257.4

257.4

Q4

Q3

Q2

Q1

Growing Revenues

654.9

* Annual figures may have some discrepancy due to rounding

RM ‘million

12

817.0

921.0

989.0

279.4

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2016 2017 2018 2019 2020

27.233.6 31.1 30.2

46.6

27.3

27.1 33.6 32.5

29.8

34.332.1 35.6

36.0

32.5 32.9 32.1

Q4

Q3

Q2

Q1

Net Profit

46.6

120.4

RM ‘million

13

127.6 129.7 130.4

* Annual figures may have some discrepancy due to rounding

Consistent Dividends since IPO

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1.29

1.66 1.78

2.652.95 2.95 3.00

3.40 3.45

6.45 6.49

7.006.75

7.40

Dividends Declared (RM Sen/Share)˜

^ including a special 1 sen

tax-exempt dividend

Dividend Payout Ratio

FY2019 42.0%

FY2018 38.6%

FY2017 40.7%

FY2016 40.0%

FY2015 37.8%

FY2014 36.0%

FY2013 42.4%

FY2012 49.3%

FY2011 48.4%

FY2010 45.5%

FY2009 55.6%^

FY2008 45.2%

FY2007 45.0%

FY2006 28.0%˜Adjusted for the 1:1 bonus shares

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Investment Merits

Plan to increase capacity by 1.0 ~ 1.5 billion pieces of

gloves every year

Resilient balance sheet with net cash position and continued ability to generate positive

operating cash flow

Consistent dividend payout since listing

We are distinct from our competitors – we have 2 main sources of revenue, namely:

1. High tech cleanroom gloves – own brand, direct to end-user and high profit margin

2.Healthcare gloves –consistent demand, resilient to changing market conditions

15

Thank You!

Media & IR Contacts:

James BywaterAssociate Director

Jonathan WeeConsultant

riverstone@financialpr.com.sg

Tel: (65) 6438 2990

Fax: (65) 6438 0064

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